Interest question?

joseph_2

Hello,

Since ive moved from being a DFW (woohoo) to a MFW. Ive made my first over payment on my mortgage. Im with Nationwide and do my finances online. I check my mortgage balance daily and am paying £15.25 a day in interest (this is worked out daily). However after my first over payment of £50ish pounds my daily interest payment is still the same! Should it have come down? How much do i need to pay to make a difference. Next month my over payment should be more, about £200ish

Joseph

ThankYouAndEnjoy!

Hello

We are with the NationWide and have been amking o/payments of £500 a month. Our Daily Interest reduces by 7p each month with each o/payment, so based on your £50, that is probably correct.

Not to worry though, as you still have reduced the Capital your Interest over the term would have reduced, you will jsut not see it yet. Keep on o/paying (if that is your intention) and you will start to see reduced daily interest in no time!!

Good Work on being a MFW - Why Not join the mortgage free in 3 gang??

lisyloo

Hi Joseph,

I've done some brief calculations without knowing your interest rate.
The interest that you will gain from this overpayment is less than 1p per day which will explain why it's not showing up.

However don't be disheartened by that because it WILL build up and it will compound up, so you are doing the right thing, it just it's showing up yet.

mystic_trev

pinkmilady wrote: »

http://www.pink-martini.org/missions/liens/link.php?m=1&l=1&u=7&k=1q5I0e5licY2VpbrMeOJ7Lhf6Vu5L

Multi :spam: ing reported

joseph_2

Hello,

Thanks for the advice (except pinky??). Ive just glanced at the free in 3 thread and will look in to it. Some background. I currently owe today 108800.65, with 290 payments to go (locked for another 14 months). Current interest rate 5.12%. I think this is going up to 5.37% next month. (Am i right in thinking the interest rate hike kicks in on the 1st of the month after they announce it?) I had a mortgage a lot lower before this owing about 65000ish with 18 years to go (when we renewed i would take some years off the term upping payments, i also plan to do this next time) but weve "upgraded" and plan to stay here for the duration now. Thanks all.